L.B. v. New Jersey Department of Community Affairs

New Jersey Superior Court Appellate Division·Decided October 17, 2025·No. A-2871-23·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2871-23

L.B., Petitioner-Appellant,

v.

NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS,

Respondent-Respondent.

Argued September 10, 2025 – Decided October 17, 2025 Before Judges Mayer and Paganelli.

On appeal from the New Jersey Department of Community Affairs, Docket Nos. HCV: 202-19 and HCV: 203-19.

Janet Gravitz argued the cause for appellant (South Jersey Legal Services, Inc., attorneys; Janet Gravitz, Maria A. Born, and Kenneth M. Goldman, on the briefs).

Levi Klinger-Christiansen, Deputy Attorney General, argued the cause for respondent (Matthew J. Platkin, Attorney General, attorney; Donna Arons, Assistant

Attorney General, of counsel; Levi Klinger-

Christiansen, on the brief).

PER CURIAM L.B. appeals from the April 15, 2024 Department of Community Affairs (DCA) final agency decision terminating her Section 8 voucher program benefits based on her failure to report an increase in her household income and failure to promptly notify and request permission to move to a different apartment. 1 Because we conclude L.B. fails to establish the DCA's decision was arbitrary, capricious or unreasonable and the DCA's decision is supported by credible evidence in the record, we affirm.

I.

We glean the facts and procedural history from the DCA record, including the parties' stipulations. L.B. "was a participant in the Section 8 Housing Choice

1 "Section 8 rental assistance is a federal program that is pervasively regulated by federal statutes and regulations." Bouie v. N.J. Dep't of Cmty. Affs., 407 N.J. Super. 518, 528 (App. Div. 2009) (citing 42 U.S.C.A. § 1437f; 24 C.F.R. §§ 982.1 to 982.643). "Public Housing Agency (PHA) means any State, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act." 24 C.F.R. § 5.100. In New Jersey, the DCA is the PHA and administers the Section 8 program. See Bouie, 407 N.J. Super. at 528.

A-2871-23

Voucher Program . . . beginning [on] September 1, 2016." DCA paid a portion of L.B.'s rent and L.B. was responsible for the remainder.

The DCA notified L.B. of her obligation to provide "any information requested in connection with annual and interim re-examinations of family income" and "promptly (defined as within ten days in writing) inform DCA of all income sources as well as any changes in income." In addition, the DCA gave L.B. a "Guide to the Section 8 Housing Program," detailing her obligations as a Section 8 housing program participant.

About a week after entering the Program, L.B. submitted a notarized letter to DCA, advising she was no longer employed, and completed a "Zero Income Checklist." Based on this information, L.B.'s monthly rental obligation was reduced to $0.

On or about November 15, 2016, L.B. obtained employment. The offer letter stated L.B.'s pay rate was $24 per hour and provided the email address for the employer's corporate recruiter.

In February 2017, the employer provided a letter to L.B., extending her employment through May 1, 2017, and confirmed all other terms of employment would remain unchanged. The letter provided the employer's email address, but no mailing address or phone number.

A-2871-23

On April 10, 2017, Deborah de la Cretaz, a DCA Technical Assistant, sent L.B. a letter that stated: "I have received your information in reference to your job . . . . Please provide proof of any income that you have received from them since February . . . 2017. I cannot adjust your rent portion unless I know what you are averaged to make per year."

A few weeks later, Quenda Whitecloud, a DCA Field Representative, sent L.B. a letter that stated: "Housing assistance . . . is scheduled to terminate on September 1, 2017[,] unless the information in your file is updated." Among the information to be provided, L.B. was required to submit a "Tenant Information Form" (TIF) by May 12, 2017. In accordance with the TIF, L.B. was required to provide two current and consecutive original pay stubs and payroll summary reports. On the form, L.B. indicated her current income. However, she failed to state her monthly income or attach the required documentation. In addition, L.B. submitted an authorization for the release of information.

Tracy McGovern-Smith, DCA's Principal Field Representative, testified DCA had access to HUD's2 Enterprise Income Verification (EIV) database.

2 U.S. Department of Housing and Urban Development.

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However, as of April 2017, DCA did not verify L.B.'s income in EIV because L.B. "had[ no]t been working there long enough . . . she had just started."

On May 10, 2017, L.B. provided DCA an extension of employment offer.

The letter indicated L.B.'s temporary employment would be extended to June 30, 2017. The letter provided an email address, but no mailing address or phone number.

On June 28, 2017, Whitecloud sent L.B. a letter that stated: "As per our conversation on June 27, 2017, please mail me your employment letter and bank statements. Enclosed is an envelope for your convenience. If you have any questions please feel free to contact me at the above phone number."

On July 7, 2017, L.B.'s employer provided a letter extending her employment to September 30, 2017. Further, the letter advised L.B.'s other terms of employment remained unchanged. The letter provided an email address, but no mailing address or phone number. In addition, L.B. spoke to Whitecloud on the phone in July, and was advised that her information was incomplete to process her Section 8 housing renewal, and she needed to submit pay stubs.

On August 14, 2017, L.B. provided DCA with her "Statement of Earnings and Deductions" for the time period from June 24, 2017 to July 21, 2017. On

A-2871-23

August 18, 2017, DCA "issued a rental portion letter . . . wherein [L.B.'s] rent portion was increased to . . . 100% of the rent payment."

On September 11, 2017, L.B.'s employer advised it no longer required her services effective September 22, 2017. A few weeks later, L.B. submitted a "Statement of Zero Income" to DCA.

On October 6, 2017, McGovern-Smith wrote to L.B. and advised DCA's "[i]nformation . . . indicated that [he]r household ha[d] violated a 'participant' requirement" under:

24 C.F.R. [§] 982.552(b)(2) not reporting income to the Program. All information to the Program must be true and accurate. You failed to disclose all required information requested by our office as follows: As head of household you were responsible to report income being received by all household members.

The family must supply any information requested by . . . [DCA] or HUD for the use in a regularly scheduled re-examination or inter re-

examination of family income and composition in accordance with HUD requirements. [L.B.] failed to report in writing within ten . . . days her income. The following income amount of $29,878[] was unreported and created a debt of $8,963.40 which is over the maximum limit to repay.

Based on this information, [DCA] has decided to terminate your participation in the Program on the last day of November 2017. . . .

[(Boldface omitted).]

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McGovern-Smith informed L.B. she "ha[d] the right to request an informal hearing . . . before [he]r participation [wa]s actually terminated." L.B. then requested an informal hearing.

On November 17, 2017, following a re-examination, Whitecloud provided L.B. with a "Notice of Housing Assistance Payment and Family Contribution" stating her monthly rental contribution effective October 1, 2017, would be $13.

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